North Carolina Down Payment Support Programs

Payments Gateway - These systems would be the Mortgage Credit Certificate as well as the Down Payment Assistance Program.

Should you qualify for one of the plans and also you purchase a home between January 1, 2009 and December 1, 2009, you may also be eligible for the $8,000 tax credit merely enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a home within the past three years. It is precisely the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. The MCC takes this a step further.

You can claim 20% of the interest you pay as a credit in your federal income taxes, in case you are eligible for the MCC. You can save around .

You may find a way to combine this should you qualify for 2009, for the MCC. This would reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your income and the purchase price of the house you are purchasing. Household income means the “gross income of the mortgagor and any other man expected to reside in the residence who is 18 years old or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limitations 1 Man $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Persons $70,500

MCC Sales Cost Limits New House $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

Home buyers that need help with their deposit and closing costs may be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The purchaser only has to pay and the load would pay as much as $8,000 of the remaining balance.

This program has stricter income limitations than the MCC program summarized above. Like the MCC application, it can be used in conjunction with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit help, however, can not be used along together with the MCC. This is an either or situation.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Individuals $45,650 3 Men $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New Dwelling $210,000 Existing Residence $210,000